Bitcoin Faces Significant Resistance at $94K, Analysts Say

Bitcoin is finding it challenging to push beyond the $94,000 mark, following its unsuccessful effort to regain this price level just two days ago, according to analysts at Bitfinex.

In a report dated March 3, they stated, "Any recovery to take the price back above $94,000 might face significant resistance." Bitcoin had fallen below this level on March 2 and has struggled to rebound since then.

Market Conditions Impacting Bitcoin's Price

The analysts attributed this forecast to the recent fluctuations in the market triggered by US President Donald Trump's announcement on March 1 regarding a pledged crypto reserve, which momentarily boosted Bitcoin by 12% from $85,000 to around $95,000.

However, due to persistent selling pressure in the Bitcoin spot market, most of those gains have been wiped out. Currently, Bitcoin is trading at approximately $87,190, meaning it would need to increase by nearly 8% to reach $94,000, based on CoinMarketCap data.

Bitcoin has seen a decline of 7.12% over the last month. Source: CoinMarketCap

The outlook among cryptocurrency analysts concerning Bitcoin's immediate price trajectory seems uncertain, lacking clear indicators that the downtrend has ended or that an uptrend is developing.

Pseudonymous trader Rekt Capital expressed on March 4 via X that, while "history suggests the bottom may very well be in on this downside deviation," there is still potential for further declines.

Rekt noted that while Bitcoin might stabilize around the $93,500 range in the upcoming days, this does not guarantee the price won't dip below $93,500 again.

Volatility Expected Until Real Buyers Enter Market

Crypto analyst Axel Adler shared on March 4 via X that it was promising to see buyers step in to support Bitcoin when it approached $81,000.

Moreover, Michaël van de Poppe, founder of MN Trading, remarked that a wait-and-see approach is advisable for the coming week, as a variety of macroeconomic data and events are on the horizon.

The US Consumer Price Index (CPI) for February is scheduled for release on March 12, just days before the Federal Reserve's interest rate decision on March 19.

Kyle Chasse, founder of Master Ventures, pointed out that Bitcoin's price will likely continue to fluctuate until genuine buyers come into the market, moving beyond the current interest from traders chasing arbitrage opportunities.

The Crypto Fear & Greed Index, which gauges market sentiment, currently stands at 20, indicating "Extreme Fear," a state it has remained in since February 25.

Note: This article does not provide investment advice or recommendations. Every trading endeavor involves risks, and readers should conduct thorough research before making investment decisions.

Bitcoin, Resistance, Volatility